Hungary to nudge banks towards mortgage bond financing

April 8, 2015 3:42 PM

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BUDAPEST, April 8 (Reuters) - Hungary plans to require banks to issue mortgage bonds to finance 15 percent of their outstanding home loans, to reduce risks to lenders, a central banker said on Wednesday.

Marton Nagy, the central bank's managing director, told an economic conference that the reform was under consultation with the European Central Bank and could take effect sometime around the middle of 2016 to give banks enough time to prepare.